Auto Shop Leasehold
For Sale
Contact for pricing
511 South State Road, Davison, MI 48423
For sale auto shop with a brand new 10-year lease renewal through September 2036.
Property Size6,772 SF
Price / SF$237.42
Days on Market61
Property Features for 511 South State Road
General Information
Standard status
Active
Size
6,772 SF
Property subtype
Retail
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$100,485
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
Encore Real Estate Investment Services
(248) 702-0299
Listed By:
Deno Bistolarides · License #6502378067
Source:
Crexi
Added: Jun 10
Changed: Aug 8
Last Checked: Aug 8 at 12:05PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Encore Real Estate Investment Services
Investment Insights
Based on property information with market context.
This for-sale auto shop property is part of a newly renewed tenant agreement, with a 10-year extension currently in place and a lease expiration in September 2036. The asset is identified as an automotive retail/auto shop use within the provided property profile.
The property is located at 511 South State Road in Davison, Michigan (48423). No additional site specifics, such as building configuration, vehicle bays, frontage details, or on-site improvements beyond the lease renewal information, are provided in the available materials.
For investors and owner-operators evaluating automotive-focused real estate, the primary takeaway from the provided information is the extended lease term through September 2036 under the brand new renewal. The property’s classification as an auto shop/automotive property may align with tenants seeking a dedicated automotive retail setting, while buyers may value the reduced near-term rollover risk implied by the longer lease horizon described here. Please note that further underwriting details are not included in the supplied information.
The property is located at 511 South State Road in Davison, Michigan (48423). No additional site specifics, such as building configuration, vehicle bays, frontage details, or on-site improvements beyond the lease renewal information, are provided in the available materials.
For investors and owner-operators evaluating automotive-focused real estate, the primary takeaway from the provided information is the extended lease term through September 2036 under the brand new renewal. The property’s classification as an auto shop/automotive property may align with tenants seeking a dedicated automotive retail setting, while buyers may value the reduced near-term rollover risk implied by the longer lease horizon described here. Please note that further underwriting details are not included in the supplied information.
Key Highlights
- Auto shop building built in 2005
- Lease renewed for 10 years with lease expiration in September 2036
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$70,299
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.37%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,405,980
$1.4M
Cap Rate 7%
$1,004,271
$1.0M
Cap Rate 9%
$781,100
$781.1K
Market Conditions
NOI Build-Up for 6,772 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$104.8K $15.48/SF
− Vacancy
−$4.4K −$0.65/SF
EGI
$100.4K $14.83/SF
− OpEx
−$30.1K −$4.45/SF
NOI
$70.3K $10.38/SF
Area
Genesee County, MI
Vacancy
4.20%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,405,980
Cap Rate 7%
$1,004,271
Cap Rate 9%
$781,100
Alternative Uses
Best Use
Retail
$1.00M
$878.7K – $1.17M
NOI $70,299 @ 7.0% cap · market cap 4.37%
Second Best
Industrial
$547.9K
$479.4K – $639.3K
NOI $38,355 @ 7.0% cap · market cap 2.39%
Theoretical Best
Office A
$1.43M
$1.25M – $1.66M
NOI $99,751 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
459
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 48423, MI
33,801
Population
15,248
Households
2.2
Avg Household Size
41
Median Age
25%
College-Educated
93%
High-School Grad
64.5 sq mi
ZIP Area
524
Density / Sq Mi
$64,096
Median Household Income
$40,463
Median Earnings
$953
Median Rent
$209,400
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- T&G Auto Glass Inc — 1146 S State Rd, Davison, MI 48423
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- Todd Wenzel Buick GMC of Davison Service Department — 1146 S State Rd, Davison, MI 48423
- Todd Wenzel Buick GMC of Davison Parts Department — 1146 S State Rd, Davison, MI 48423
- Always Auto Glass — 1146 S State Rd, Davison, MI 48423
Frequently Asked Questions
What type of property is this?
Auto shop - For sale auto shop with a brand new 10-year lease renewal through September 2036.
Where is this auto shop located?
The property is located at 511 South State Road Davison, MI.
What is the asking price?
The asking price for this property is $1,607,800.
What are key features of this property?
This property features: Auto shop building built in 2005; Lease renewed for 10 years with lease expiration in September 2036
